The Danang IT Park is a project of Trung Nam Group, oriented towards development based on the "Silicon Valley" model of the US and the standards of the first international-class concentrated information technology (IT) park in Da Nang .
The total investment is over 2,000 billion VND, with Trung Nam EMS Joint Stock Company as the investor.
Danang IT Park, spanning 341 hectares in Hoa Lien commune, Hoa Vang district, is expected to become one of the best IT development communities in Asia, providing top-quality IT products to the world , an ideal workplace for 25,000 people, including experts, senior engineers, and workers, and a satellite city in the northwest of Da Nang with approximately 100,000 residents.
However, this project, with a total investment of trillions of dong, is stalled and in a state of disrepair. The villas for experts and the ecological park within the Danang IT Park project are also abandoned.
How is the developer of Danang IT Park doing business?
The investor of the Danang IT Park project is Danang Information Technology Park Development Joint Stock Company (DITP).
DITP is known to be a company affiliated with Trung Nam Group. This is a diversified conglomerate founded by brothers Nguyen Tam Tien and Nguyen Tam Thinh. Currently, Nguyen Tam Thinh is the Chairman of the Board of Directors and Nguyen Tam Tien is the General Director of Trung Nam Group.
In its recent bond issuance results disclosure, DITP noted that the email address had a domain name that matched the website of Trung Nam Group.
On its website, Trung Nam Group also introduces itself as the investor of Danang IT Park.
On July 22nd, Mr. Nguyen Tam Tien, the legal representative of DITP, announced the issuance of a 30-month bond issue worth VND 500 billion, with a 0% interest rate, maturing on January 16th, 2027.
How is Trung Nam Group doing financially?
Trung Nam Construction Investment Joint Stock Company (Trung Nam Group) was established in 2004, focusing on fields such as energy, infrastructure - construction, real estate, and information and electronics industry. This is a company that started in infrastructure construction, then invested in real estate and hydropower, and more recently in renewable energy, with a series of solar and wind power projects. Some major projects include Trung Nam Thuan Nam solar power plant, Ea Nam wind power plant, and Trung Nam - Tra Vinh wind power plant…
Trung Nam Group has a 20-year history of operation but has developed very strongly, experiencing rapid growth in the last nearly 10 years and now has a huge scale, with assets worth billions of USD.
By the end of 2022, Trung Nam Group had total assets of 96,000 billion VND (equivalent to approximately over 3.8 billion USD, at the current exchange rate), nearly 1.5 times higher than the asset size ofFPT Group at the end of Q2/2024 and about 1.8 times higher than Vinamilk (VNM).
Trung Nam Group's equity capital reached over 27,900 billion VND (approximately 1.1 billion USD).
The reason Trung Nam Group has grown so rapidly in scale is because over the past decade, the group has heavily invested in renewable energy, which requires a very large amount of capital to implement the projects.
On its website, Trung Nam Group stated that by October 2021, it had contributed 1.63GW of energy to the national grid, leading the private sector in this industry.
Statistics show that the corporation has 9 power projects with a total investment of tens of trillions of VND, including 2 large projects: Trung Nam Thuan Nam solar power (1.2 billion kWh) and Ea Nam wind power (1.1 billion kWh/year).
The Trung Nam Thuan Nam solar power project is being implemented by Trung Nam Southern Machinery Joint Stock Company - Trungnam SMC (established in 2013). This is a member of Trung Nam Group.
The Ea Nam wind power project is considered a key project of Trung Nam Group in 2021 due to its very large scale. Trungnam SMC is responsible for transporting and installing 84 wind turbines using 20 main crane teams with capacities ranging from 750 to 1250 tons.
Along with the capital increase, Trung Nam Group is known to be a very heavily indebted corporation, with bonds being its preferred source of debt.
As of the end of 2022, according to a report submitted to the Hanoi Stock Exchange, Trung Nam Group had total liabilities of over 68,100 billion VND (equivalent to over 2.7 billion USD). Total bond debt was approximately 24,270 billion VND.
Over the past two years, the Trung Nam Group has repeatedly requested extensions and delayed repayments of bonds related to renewable energy projects. As a result, the group's business performance has deteriorated.
In May of this year, Mr. Nguyen Tam Thinh was recommended for a temporary travel ban due to his failure to fulfill his tax obligations. Subsequently, the Khanh Hoa Provincial Customs Department sent a document to the Immigration Department (Ministry of Public Security) regarding the cancellation of the travel ban for Mr. Thinh.
One of Trung Nam Group's member companies, Trung Nam Thuan Nam Solar Power Co., Ltd., had previously sent an urgent appeal to the Government due to the risk of incidents and disruptions to the operation of the Thuan Nam 500kV transmission system. At that time, the company was unable to negotiate with EVN to increase revenue from its power generation, while also having to pay bank interest.
In 2022, Trung Nam Thuan Nam Solar Power Company Limited reported a net profit after tax that decreased by 80% compared to the previous year, falling to 81 billion VND.
In late November 2023, Trung Nam Construction Investment Joint Stock Company (Trung Nam Group) announced that it had delayed payment of nearly 107 billion VND in interest due on a bond issue worth a total of 2,000 billion VND.
In 2022, Trung Nam Group recorded a sharp decline in profit, falling to only 255 billion VND, compared to 1,635 billion VND in 2021.
Many other member units of Trung Nam Group are also facing difficulties. Trung Nam Dak Lak 1 Wind Power Joint Stock Company (the investor of the 600-hectare Ea Nam wind power plant project) incurred a loss of VND 390 billion in the first half of 2023, after a loss of VND 858 billion in 2022. This company also fell into a situation of overdue bond interest payments. Trung Nam Solar Power, Trung Nam Tra Vinh Solar Power, Trung Nam Ninh Thuan, etc., all recorded a decrease in profits compared to the previous year.
Source: https://vietnamnet.vn/ong-lon-dung-sau-thung-lung-silicon-bo-hoang-tai-da-nang-2315455.html
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